Explain how experience from increased launches can help Spacex achieve a low cost strategy.

Answer 1

Arturo,

Consider these questions to point you in the right direction. Think about what the SpaceX organization learns from each launch and how applying these lessons influence costs.

1. What variable costs does a rocket launch involve? For example amount of fuel used or parts that must be replaced after each launch.
2. What are the fixed costs of each rocket launch? For instance the rent for a building or launch pad, employee salaries, insurance.
3. How can technology improvements decrease costs? Less fuel used? Fewer employees needed for a launch? In other words, what have the SpaceX engineers learned from the launch that can improve cost efficiency?

Hope this helps.

Marshall